adobe scene7 mobile commerce survey: are you dialed in?

8/9/2019 Adobe Scene7 Mobile Commerce Survey: Are You Dialed In?

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1Adobe Scene7 Mobile Commerce Survey: Are You Dialed In?

August 2010

[email protected]

Adobe Scene7 Mobile Commerce Survey:

Are You Dialed In?


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Contents

Executive Summary 3

Methodology and Participants 4

Survey Responses 6

How does your company plan to use the mobile channel? 6

What are you deploying as part of your mobile strategy? 7What percent of your online traffic uses each mobile website/application? 7How will your customers visually browse your merchandise collections? 8

Which mobile features do you expect to be most effective in driving m-commerce? 8

Which development tools do you plan to use for your mobile website or applications? 9Which mobile commerce visualization features do you currently use or plan to

use over the next year? 9What is the actual or expected effectiveness? 11

Appendix 13

About Adobe Scene7 15

About Adobe 15


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Executive Summary

BackgroundTe advent o smart mobile devices is transorming the way consumers shop.

Consumers are using their phones to research products as they browse in store aisles, and over the years, they are

expected to buy more goods online using their wireless devices. In the U.S. alone, Coda Research Consultancyexpects mobile commerce revenue to grow at a 65% compound annual rate to reach $24 billion by 2015, or 9% ototal eCommerce revenue. Recent data lend credence to these projections: eBay expects sales rom mobile devicesto reach $1.5 billion this year, and Amazon hit $1 billion in mobile sales or the 12 months ending June 30, 2010equivalent to about 4% o its total sales. Worldwide, mobile commerce should hit $119 billion in 2015, or 8% o thetotal online commerce market, according to ABI Research.

PurposeDespite the upbeat orecasts, the majority o businesses are in the planning or early deployment phases o theirmobile strategies. Revenue generation was identied as the no. 1 mobile objective or the majority (60%) o onlineretailers surveyed by Forrester Research, Inc., and 74% have deployed or are currently developing a mobile

strategy. Tese retailers reported investing an average $170,000 in their mobile sites in 2010, a benchmark thatsboosted by larger retailers, some o whom anticipate investing as much $500,000.o help businesses respond to the opportunities and challenges in the channel, companies worldwide weresurveyed regarding their mobile commerce plans and existing deployments. From enhancing customer experienceto engaging shoppers and driving conversion, the survey uncovers early lessons on the strategies and tactics thatare working. Te survey was conducted in July 2010; 446 people responded.

Key findings Mobile websites are the predominant presence o businesses in the mobile channel, accounting or the bulk o

their mobile trac and surpassing the trac generated by downloadable mobile applications. More than 80%

o the respondents said they were planning or have already deployed a mobile commerce website versus 8%with a downloadable application-only strategy.

Respondents identied our key areas o execution or their mobile strategy: 1) promotions, 2) commerce,3) product inormation display, and 4) branding. Promotions emerged as the top strategic element, ollowed byonline commerce.

Rich, ull-screen image zoom and videos are the most eective ways to browse or display products, accordingto a majority o the respondents. Grid viewing o thumbnails is deemed most eective or browsing multipleproduct images.

Overall, visual merchandising eatures are deployed by less than one-third o the respondents. However, asmany as 81% o the respondents indicated they are planning to deploy those eatures, suggesting richer mobileexperiences will be created over the coming months. Fully 96% o the respondents ranked catalogs &

brochures, alternative images, and zoom & pan as most eective.

ConclusionDespite the buzz around downloadable mobile applications, the Adobe Scene7 survey ndings support the case orchoosing mobile website deployment or commerce over applications i resource constraints were to dictate asingle choice. Te vast majority o businesses considered websites their strategic entry point in mobile commerce.Tose deploying multiple mobile properties, including websites and applications, also indicated their websitesaccount or the majority o their mobile trac thus providing the broadest reach possible.


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Tat an overwhelming majority o the respondents selected promotions as a key execution area suggests mobile isa multichannel play, as merchants use mobile promotions to drive shoppers to retail or transact commerce. Tus,businesses will need to engage shoppers by delivering rich and seamless experiences across every channel,including mobile. Accordingly, they will tap the proven tools in PC-based eCommerce, such as ull-screen zoomand videos as well as other rich visual merchandising tactics.

Te opportunities and business case or investing in mobile are becoming clearer to growing numbers obusinesses, especially when the responses rom this survey are compared with theAdobe Scene7 CustomerExperience in the New Decade survey completed in January 2010 (see Appendix). It is indeed widely anticipatedthat businesses will ramp up in mobile or ne-tune their mobile strategies in the coming months. Tose whohave executed mobile commerce strategies will continue to make investments to improve the user experience andextend richer experiences to the mobile web, while those who have been on sidelines will dip into the channel andapply the learnings rom their peers.

Either way, the race is on to win in mobile.

Methodology and Participants

TeAdobe Scene7 2010 Mobile Commerce Survey was conducted between July 6 and July 23, 2010.

Te key objective o the online survey was to identiy and analyze the strategic and tactical steps businesses aretaking or planning to take to address the opportunities and challenges in the mobile channel. Te survey aimed touncover how businesses plan to enhance customer experience and drive conversion and in-store trac. Te resultswere compiled based on responses rom 446 participants representing a broad cross-section o productcategories and selling channels. While this was a global survey, more than 75% o the respondents were based inNorth America.


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Participant Profile

IndustryTese industries were represented by more than 50% o the respondents: retail, agencies (both ull-service anddigital agencies), computer hardware, services, soware, & media. At 20%, retail was the top-represented industry.

0% 5% 10% 15% 20% 25%

Real Estate

Telecommunications Equipment & Services

Transportation Services

Health Care/Pharmaceuticals

Financial Services

Government/Non-Prot

Leisure

Automotive

Education

Photography

Business Services

Industrial Manufacturing

Consumer Products Manufacturers

Media

Computer Hardware, Services, Soware

Other

Agencies (Advertising, Interactive)

Retail

What is your company's primary industry?

SalesMore than hal o the respondents (60%) represented companies with sales below $10 million; about one in verespondents represented companies with sales above $100 million.

0% 10% 20% 30% 40% 50% 60% 70%

More than $100 million

$50 million - $100 million



Less than $10 million

What are your company's annual sales?


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GeographyAlthough this survey was distributed worldwide, nearly 75% o the respondents were based in North America;approximately 13% were based in Western Europe.

0% 10% 20% 30% 40% 50% 60% 70% 80%

MiddleEastandAfrica

EasternEurope

La>nAmerica

Asia-Pacific

WesternEurope

NorthAmerica

Where is your company headquartered?

Survey Responses

How does your company plan to use the mobile channel?More than 75% o respondents identied marketing/promotions as a key execution area in their mobile strategy.Online commerce ranked second, selected by 62% o respondents, closely ollowed by product inormation.

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Other

Other channel sales (e.g., store)

Customer service

Branding

Product information

Online commerce

Marketing/Promotions

How does your company plan to use the mobile channel? Check all that apply.


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What are you deploying as part of your mobile strategy?Te results showed mobile websites as central to the deployment o a mobile strategy. Over 80% o all respondentswere planning or had deployed a mobile website. Very ew (8%) had a strategy based solely on mobiledownloadable applications (e.g., without a mobile website). Only 3% had an iPhone application-only strategy,while 1% had a combined iPhone/iPad-only strategy. Hal the respondents embraced a combined mobilewebsite and downloadable mobile application strategy. More than 35% have or were developing an iPadapplication, higher than those developing on other smartphone platorms, except the iPhone.

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Other tablet applications

Other

Other phone applications

Android application

SMS/MMS

iPad application

iPhone application

Mobile website

What are you deploying as part of your mobile strategy? Check all that apply.

What percent of your online traffic uses each mobile website/application?O all mobile trac, mobile websites drew the most trac; mobile applications trac across the various platorms

collectively lagged the mobile website trac, ranging as low as 1% to as high as 8% o the total trac.

0% 5% 10% 15% 20% 25%

Other tablet applications

iPad application

Android application

Other phone applications

SMS/MMS

iPhone application

Mobile website


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How will your customers visually browse your merchandise collections?Compared with other visual browsing experiences, rich product viewing (ull-screen image zoom and video) wascited by nearly 60% o respondents as the predominant experience. Grid (rows and columns) viewing othumbnails was the top way to browse multiple product images according to 45% o the respondents. Bothpresentations are important visual browsing eatures. Grid-viewing allows shoppers to quickly browse multipleoptions on one screen, but a nal purchase decision requires the capability to view a single image with zoom

unctionality or a ull-size video.

0% 10% 20% 30% 40% 50% 60% 70%

Other

Carousel - graduated-size horizontal scrolling

Accordion panes

Carousel - uniform-size horizontal scrolling

Light-table (single full view, with thumbnail tray below)

Vertical scrolling

Grid (rows/columns)

Full screen (image zoom, video)

How will your customers visually browse your merchandise collections? Check all that apply.

Which mobile features do you expect to be most effective in driving m-commerce?From a list o eatures, respondents identied several as being valuable in driving m-commerce: add-to-cart (60%),product inormation (60%), promotions (58%) were o nearly equal importance. Not ar behind was social sharing(55%). Keyword search (51%), click-to-call, reviews & ratings and rich media were secondarily importantcompared to the our top-ranked eatures.

0% 10% 20% 30% 40% 50% 60% 70%

Other

Gi/wish list registries

Inventory status

Store locator/GPS

Order status

Rich media visualization

Reviews/ratings

Click to call

Keyword search

Social sharing

Promotions

Product information

Add to cart

Which mobile features do you expect to be most effective in driving m-commerce? Check all that apply.


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Which development tools do you plan to use for your mobile website or applications?More than 70% o respondents were planning to develop their mobile properties using HML5, while over 50%planned to use Flash. Familiar to any website development team, these rameworks are the ideal tools to use orbuilding a mobile website strategy. Some 38% o the respondents stated they would use both Flash and HML5.o make the experience even richer, Ajax and Adobe Scene7 were additional tools selected by more than 30% o

the respondents.

0% 10% 20% 30% 40% 50% 60% 70% 80%

Other

Native device framework/SDK

DHTML

Adobe Scene7

Ajax

Adobe Flash

HTML5

Which development tools do you plan to use for your mobile website or applications? Check all that apply.

Which mobile commerce visualization features do you currently use or plan to use over

the next year? What is the actual or expected effectiveness?Te survey identied the most popular deployed or planned mobile visualization eatures over the coming year,along with the eectiveness o each eature. Overall, visual merchandising eatures were lower in currentutilization by all respondents, compared with other undamental mobile eatures such as add-to-cart. Te mostdeployed eatures (36%) were alternative images and eCatalogs & brochures; on the low end, only 19% havedeployed 360-degree spin.

Tese deployment rates appear consistent with the implementation seen on standard, PC-optimized websites.

Top PlannedSurprisingly, the eature garnering the lowest deployment rate in mobile ranked highest among planned mobileeatures.

Importantly, respondents universally appeared to want to integrate and improve visual merchandising, as three toour times more respondents (e.g., over 60% and as high as 80% o all respondents) stated they were planning todeploy all o those eatures. Among them, 360-degree spin, shop-by-outt or shop-by-collection, and mix-and-match were ranked as the top planned eatures by nearly 80% o respondents.

Other planned visual eatures included product comparisons (75%), videos (74%), multi-media combinations o


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zoom, spin, videos or animations (73%), custom product design (73%) and zoom/pan (71%).

0% 10% 20% 30% 0% 50% 60% 70% 80% 90%

Alterna4veimages

Catalogs&brochures

Colorswatching/colorizing

Zoom/pan

Customproductdesign

Videos-progressivedownload

Mul4-mediacombiningzoom,spin,videosoranima4ons

Videos-livestreaming

Productcomparisons

Mixandmatchcoordinates

ShopbyouOit,roomorcollec4on

360-degreespin

Deployedvs.Planned

Planned Deployed

DeployedAlternative images 36%Catalogs & brochures 36%Color swatching/colorizing 31%Zoom/pan 29%Custom product design 27%Videos - progressive download 27%Multi-media (zoom, spin,videos or animations) 27%Videos - live streaming 26%Product comparisons 25%Mix and match coordinates 20%Shop by outt, room or collection 19%360-degree spin 19%

Planned360-degree spin 81%Shop by outt, room or collection 81%

Mix and match coordinates 80%Product comparisons 75%Videos - live streaming 74%Multi-media (zoom, spin,videos or animations) 73%Videos - progressive download 73%Custom product design 73%Zoom/pan 71%Color swatching/colorizing 69%Catalogs & brochures 64%


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Alternative images 64%

What is the actual or expected effectiveness?Importantly, the reported planned and deployed eatures did not correlate to what respondents believed were themost eective visual merchandising eatures. eCatalogs & brochures (96%), alternative images (96%) and zoom/pan (96%) earned the highest ratings in overall eectiveness. Progressive and live streaming video (both at 93%) aswell as video combined with other zoom, spin or animations (92%) scored the next highest eective/very eectiveratings by all respondents. Mix-and-match coordinates and shop by outt, room or collection received the lowest

ratings 85% and 77% respectively.

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Mix and match coordinates

Shop-by-outt, room or collection

360-degree spin

Custom product design

Color swatching/colorizing

Product comparisons

Multi-media combining zoom, spin,videos or animations

Videos - live streaming

Videos - progressive download

Zoom/pan

Alternative images

Catalogs & brochures

Effective/Very Effective

Effective/Very EffectiveCatalogs & brochures 96%Alternative images 96%Zoom/pan 96%Videosprogressive download 93%Videoslive streaming 93%Multi-media (zoom, spin,videos or animations) 92%Product comparisons 91%

Color swatching/colorizing 91%Custom product design 90%360-degree spin 88%Shop by outt, room or collection 85%Mix and match coordinates 78%


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Appendix

A Marked Shift to Mobile1

Below are excerpted ndings rom theAdobe Scene7 2010 Survey: Customer Experience in the New Decade. Tesurvey, conducted between November 2009 and January 2010, received 546 responses rom brand-name retailersas well as agencies, high-tech companies, media and other global enterprises that sell a wide variety o productsand services online.

Te responses collected or the Customer Experience survey suggest a strong strategic shi to mobile as a priorityinvestment. What a dierence six months makes!

Which mobile features do you currently use or plan to offer over the next year? What is

the actual or expected effectiveness?

0% 5% 10% 15% 20% 25%

Mobile commerce shop & buy on mobile device

Price check store to Web

Check instore or Web product inventory

GPS mapping/store locator

AdverFsing, promoFons, barcoded coupons drive to

store or Web

Check delivery status

Address book integraFon for mobile

Mobile Features

Planned

Deployed

Top DeployedTe adoption o top mobile eatures remains relatively low compared to other tactics surveyed (rich media andsocial eatures being the highest in deployment), less than 10% or all. Compared to last year, address bookintegration, check delivery status, and mobile advertising now rank in top deployed eatures. Mobile commerce

penetration continues to be in the single digits (5%).

Mobile eatures are slightly more deployed in EMEA, e.g., check delivery status at 15%, GPS at 15%. Interestingly,Asia-Pacic had comparable deployment across mobile eatures to worldwide ratings, and had a slightly higherdeployment o mobile ecommerce across (8%).

1 Based on results rom the Adobe Scene7 2010 Survey: Customer Experience in the New Decade


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Top deployed ratings: Address book integration or mobile: 10% Check delivery status: 10% Advertising, promotions, bar-coded coupons - drive to store or Web: 9% GPS mapping/store locator: 9% Check in-store or Web product inventory: 7% Price checkstore to Web: 6%

Mobile commerceshop & buy on mobile device: 5%

Top PlannedAbout one-h o respondents plan to add key mobile eatures this year, including mobile advertising, checkdelivery status, mobile commerce, check in-store, address book integration. Mobile adverting tops the list oinvestment priorities or 2010. Mobile priorities worldwide are similar to last year, airly fat as investment priority,with mobile promotions still the highest priority. Note, the recent survey results also indicate thatadvertising/promotions and mobile commerce remain the top two elements o a mobile strategy.

Top planned ratings: Advertising, promotions, bar-coded couponsdrive to store or Web: 23% Check delivery status: 20% Mobile commerceshop & buy on mobile device: 19% Check in-store or Web product inventory: 19% Address book integration or mobile: 19% GPS mapping/store locator: 18% Price checkstore to Web: 16%

Top EffectiveO those respondents having deployed or planned these eatures, check delivery status and inventory check wereranked as the most eective eatures, ollowed by address book integration, price check, GPS, promotions.Interestingly, mobile commerce was rated as least eective among all mobile tactics, although this is the numberone planned mobile eature in 2010.

0% 5% 10% 15% 20% 25% 30%

Mobile commerce shop & buy on mobile device

Advertising, promotions, bar-coded coupons - drive to store or Web

GPS mapping/store locator

Price check - store to Web

Address book integration for mobile

Check in-store or Web product inventory

Check delivery status

MobileEffec+veness(ActualorExpected):VeryEffec+ve


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Top very effective ratings: Check delivery status: 27% Check in-store or Web product inventory: 23% Address book integration or mobile: 22% Price checkstore to Web: 22% GPS mapping/store locator: 21% Advertising, promotions, bar-coded couponsdrive to store or Web: 19%

Mobile commerceshop & buy on mobile device: 12%


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About Adobe Scene7Adobe Scene7 is the leading on-demand cross-media publishing platorm that enables companies to growrevenues, enhance customer experience and cut production costs. Tis easy-to-use, Web-based system givesbusiness users the control to upload, manage, enhance, publish and deliver dynamic rich content to any channelwith minimal I support. With Scene7, businesses can improve the entire selling and marketing cycle romattracting customers, to guiding them to the right products and services, to successully converting them into loyalbuyers. It is perormance optimized to dynamically generate and deliver unlimited variations rom master imagery

shortening time to market and drastically reducing costs. Scene7 solutions include Dynamic Imaging,eCatalogs, eVideos, Visual Congurators, argeted Email & Print, Media Portal and Web-to-Print. Hundreds oleading companies worldwide have selected Scene7, including QVC, Harrods, Macys, Oce Depot, Polo RalphLauren, La-Z-Boy and Levi Strauss & Co.

About Adobe Systems IncorporatedAdobe revolutionizes how the world engages with ideas and inormationanytime, anywhere, and through anymedium. For more inormation, visit www.adobe.com.

2010 Adobe Systems Incorporated. All rights reserved. Adobe, the Adobe logo, and Scene7 are either registered trademarks or trademarkso Adobe Systems Incorporated in the United States and/or other countries. All other trademarks are the property o their respective owners.

adobe scene7 mobile commerce survey: are you dialed in?

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